On August 6, the Ministry of Finance opened for comment the draft circular creating the Special Guarantee Program “United for Colombia”, which creates a guarantee scheme for ordinary bonds that can be traded on the country’s stock markets. Observations may be sent in until midnight August 10 to the ministry’s website. 

The Circular is aimed at issuers from the real estate sector and professional investors, among others. The total amount of issues to be guaranteed is up to USD 265 million, while the total amount of guarantees to be issued will be up to USD 133 million.

The text indicates that the term of the bonds to be issued is three or five years, with a maximum issuance per company and a 30% commission. Applicants can submit their request through the Colombian Stock Exchange or by direct request to the Issuer’s FNG and its structuring company. Likewise, the bill outlines the documents required for an entity to apply as an issuer and the steps to be taken in the process to reserve and issue the guarantee.